Osim

Osim: OCBC maintains Buy with $2.19 TP. Note that Jitters over the economic growth of China, which is OSIM International’s (OSIM) largest market (25% of revenue), recently resurfaced again, following disappointing industrial production and retail sales figures. Nevertheless, ote that last yr, there were also concerns over the impact of China’s economic slowdown on OSIM. However, OSIM still managed to deliver positive YoY growth in its topline and bottomline for all four quarters of 2012. House believe this reflects the efforts put in place by mgt to enhance its product appeal through innovation and productivity gains to boost its margins, which also showcases the resilience of OSIM’s business. House believe that rev forecast for FY13 has already taken into account the uncertainties over China’s economic growth, as it is 2.8% below Bloomberg’s consensus forecast. However, remain cognisant that there could be downside risks to our estimates should economic conditions and sentiment deteriorate further.